The second Payment Services Directive (“PSD2”) - Strong Customer Authentication (SCA) is a revised European regulatory requirement that aims to reduce fraud and make online payments more secure. This applies to online payments within Europe with some exemptions for contactless payments.

Why do I still need to insert a PIN or Swipe card for contactless transactions?

Strong Customer Authentication is required at point of sale subject to the following conditions:

  • Greater than £45 / €50: The value of the transaction must exceed £45 / €50; and either
  • Total Amount of Consecutive Contactless Transactions greater than £130 / €150: The cumulative monetary amount of consecutive contactless transactions without a PIN must not exceed £130 / €150; or
  • More than 5 consecutive contactless transactions:  The number of consecutive contactless transactions since the last usage of a PIN must not exceed five

Once you have used a PIN to authenticate a transaction, the count will be reset to zero.

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